Oil Market ON THE BRINK As Iran War Threatens Global Collapse

Well, let's now bring in Brett Ericson, oil and gas analyst with Obsidian Risk Advisors. Brett, thanks so much for being here. >> Absolutely. I appreciate you guys having me here today. >> Of course. So guys, if we could put up uh this Wall Street Journal article be So the US Brett is trying to crack down

on what they're calling these overland uh trade routes that Iran has been uh using to get oil out as the straight of Hormuz has been effectively and significantly closed off to them. uh what what what percentage would you say of the kind of oil trade in general or what kind of volume are we talking about

and what ability does the United States have um to affectuate a ban like this? >> Yeah. So, this is definitely a way for Iran to move both oil as well as refined products and and in particular refined products because that's where the greatest profit margin is going to be through these overland routes into these

neighboring countries. And while you know closing border crossings will absolutely have an impact, of course it can always be rerouted and it's going to be impossible to crack down in full. But every time that disruptions are made to Iran's ability to move oil or refined products, that increases the expenses, increases the cost, and therefore forces

Iran to charge higher prices domestically um as a result of greater expense. So it's going to be marginal in the grand scheme of things, but every disruption to the supply chain and to exports will add costs and as a result will hurt the Iranian economy. It's just a matter of how much are we talking here?

>> Yeah. So let's talk a little bit about that. How effective has the blockade um by the US been in hurting the Iranian economy? And uh I had seen somewhere that they were coming close to selling all of the oil that they had on the waters. So are we at a point now where